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Chapter 1 The Information Systems Strategy Triangle
Learning Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object]
Example ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Impact of IS ,[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 1.1  The Information Systems Strategy Triangle
IS Strategy Triangle ,[object Object],[object Object],[object Object],[object Object],[object Object]
BRIEF OVERVIEW OF BUSINESS STRATEGY FRAMEWORKS
Think About IT ,[object Object],[object Object],[object Object],[object Object]
Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 1.2 – Mission statements of computer companies Company Statement IBM At IBM, we strive to lead in the creation, development and manufacture of the industry's most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics.  We translate these advanced technologies into value for our customers through our professional solutions and services businesses worldwide.  Dell Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. Apple Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.
Generic Strategies Framework ,[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 1.3  Three strategies for achieving competitive advantage.
Porter’s Competitive Advantage ,[object Object],[object Object],[object Object],[object Object],[object Object]
Differentiation Strategy Variants ,[object Object],[object Object],[object Object]
Hypercompetition ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 1.4  Disruption and the new 7 Ss
D’Aveni’s new 7 Ss ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 1.5  D’Aveni’s new 7 Ss. Approach Definition Superior stakeholder satisfaction Understanding how to maximize customer satisfaction by adding value strategically. Strategic soothsaying Seeking out new knowledge that can predict or create new windows of opportunity. Positioning for speed Preparing the organization to react as quickly as possible. Positioning for surprise Preparing the organization to respond to the marketplace in a manner that will surprise competitors. Shifting the rules of competition Finding new ways to serve customers which transform the industry. Signaling strategic intent Communicating the intended actions of a company, in order to stall responses by competitors. Simultaneous and sequential thrusts Taking a series of steps designed to stun and confuse competitors in order to disrupt or block their efforts.
Application of Hypercompetition ,[object Object],[object Object],[object Object]
IS Planning and Strategic Advantage Models ,[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 1.6  Summary of key strategy frameworks. Framework Key Idea Application to Information Systems Porter’s generic strategies Framework Firms achieve competitive advantage through cost leadership, differentiation, or focus Understanding which strategy is chosen by a firm is critical to choosing IS to complement the strategy D’Aveni’s Hypercompetition Model Speed and aggressive moves and countermoves by a firm create competitive advantage IS are critical to achieving the speed needed for moves and countermoves. IS are in a constant state of flux or development.
BRIEF OVERVIEW OF ORGANIZATIONAL STRATEGIES
Organizational Strategy ,[object Object],[object Object],[object Object]
Business Diamond ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 1.7 The Business Diamond
Managerial Levers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 1.8 Managerial Levers
Understanding Organization Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 1.9  Summary of organizational strategy frameworks Framework Key Idea Usefulness in IS Discussions Business Diamond There are 4 key components of an organization: business processes, values and beliefs, management control systems, and tasks and structures. Using IS in an organization will affect each of these components. Use this framework to identify where these impacts are likely to occur Managerial levers Organizational variables, control variables, and cultural variables are the levers managers can use to affect change in their organizations This is a more detailed model than the Business diamond and gives specific areas where IS can be used to manage the organization and to change it
BRIEF OVERVIEW OF INFORMATION SYSTEMS STRATEGY
IS Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 1.10  Information systems strategy matrix. What Who Where Hardware List of physical components of the system Individuals who use it Individuals who manage it Physical location Software List of programs, applications, and utilities Individuals who use it Individuals who manage it What hardware it resides upon and where that hardware is located Networking Diagram of how hardware and software components are connected Individuals who use it/ Individuals who manage it/ Company service obtained from Where the nodes are located, where the wires and other transport media are located Data Bits of information stored in the system Individuals who use it Individuals who manage it Where the information resides
FOOD FOR THOUGHT: THE HALO EFFECT AND OTHER BUSINESS DELUSIONS
Halo Effect ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]

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SIT- Chapter 1

  • 1. Chapter 1 The Information Systems Strategy Triangle
  • 2.
  • 3.
  • 4.
  • 5. Figure 1.1 The Information Systems Strategy Triangle
  • 6.
  • 7. BRIEF OVERVIEW OF BUSINESS STRATEGY FRAMEWORKS
  • 8.
  • 9.
  • 10. Figure 1.2 – Mission statements of computer companies Company Statement IBM At IBM, we strive to lead in the creation, development and manufacture of the industry's most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics. We translate these advanced technologies into value for our customers through our professional solutions and services businesses worldwide. Dell Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. Apple Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.
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  • 12. Figure 1.3 Three strategies for achieving competitive advantage.
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  • 17. Figure 1.4 Disruption and the new 7 Ss
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  • 19. Figure 1.5 D’Aveni’s new 7 Ss. Approach Definition Superior stakeholder satisfaction Understanding how to maximize customer satisfaction by adding value strategically. Strategic soothsaying Seeking out new knowledge that can predict or create new windows of opportunity. Positioning for speed Preparing the organization to react as quickly as possible. Positioning for surprise Preparing the organization to respond to the marketplace in a manner that will surprise competitors. Shifting the rules of competition Finding new ways to serve customers which transform the industry. Signaling strategic intent Communicating the intended actions of a company, in order to stall responses by competitors. Simultaneous and sequential thrusts Taking a series of steps designed to stun and confuse competitors in order to disrupt or block their efforts.
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  • 22. Figure 1.6 Summary of key strategy frameworks. Framework Key Idea Application to Information Systems Porter’s generic strategies Framework Firms achieve competitive advantage through cost leadership, differentiation, or focus Understanding which strategy is chosen by a firm is critical to choosing IS to complement the strategy D’Aveni’s Hypercompetition Model Speed and aggressive moves and countermoves by a firm create competitive advantage IS are critical to achieving the speed needed for moves and countermoves. IS are in a constant state of flux or development.
  • 23. BRIEF OVERVIEW OF ORGANIZATIONAL STRATEGIES
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  • 26. Figure 1.7 The Business Diamond
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  • 30. Figure 1.9 Summary of organizational strategy frameworks Framework Key Idea Usefulness in IS Discussions Business Diamond There are 4 key components of an organization: business processes, values and beliefs, management control systems, and tasks and structures. Using IS in an organization will affect each of these components. Use this framework to identify where these impacts are likely to occur Managerial levers Organizational variables, control variables, and cultural variables are the levers managers can use to affect change in their organizations This is a more detailed model than the Business diamond and gives specific areas where IS can be used to manage the organization and to change it
  • 31. BRIEF OVERVIEW OF INFORMATION SYSTEMS STRATEGY
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  • 33. Figure 1.10 Information systems strategy matrix. What Who Where Hardware List of physical components of the system Individuals who use it Individuals who manage it Physical location Software List of programs, applications, and utilities Individuals who use it Individuals who manage it What hardware it resides upon and where that hardware is located Networking Diagram of how hardware and software components are connected Individuals who use it/ Individuals who manage it/ Company service obtained from Where the nodes are located, where the wires and other transport media are located Data Bits of information stored in the system Individuals who use it Individuals who manage it Where the information resides
  • 34. FOOD FOR THOUGHT: THE HALO EFFECT AND OTHER BUSINESS DELUSIONS
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